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ACC201 module 8 quiz

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Question;1.;value:10.00 points;Cala Manufacturing purchases a large lot on;which an old building is located as part of its plans to build a new plant.;The negotiated purchase price is $269,000 for the lot plus $164,000 for the;old building. The company pays $26,200 to tear down the old building and;$38,730 to fill and level the lot. It also pays a total of $1,545,568 in;construction costs?this amount consists of $1,453,800 for the new building;and $91,768 for lighting and paving a parking area next to the building.;Prepare a single journal entry to record;these costs incurred by Cala, all of which are paid in cash.;Liltua Company pays;$385,000 for real estate plus $20,405 in closing costs. The real estate;consists of land appraised at $214,200, land improvements appraised at;$102,000, and a building appraised at $193,800.;2.;value:5.00 points;Allocate the total;cost among the three purchased assets.(Round your "Apportioned Cost" answers to 2;decimal places.);rev;11_26_2013_QC_41255;3.;value:5.00 points;Prepare the journal entry to record the purchase.(Round your answers to;2 decimal places.);4.;value:10.00 points;In early January;2013, NewTech purchases computer equipment for $119,000 to use in;operating activities for the next four years. It estimates the equipment?s;salvage value at $24,000.;Prepare a table;showing depreciation and book value for each of the four years assuming;straight-line depreciation.;5.;value:10.00 points;In early January;2013, NewTech purchases computer equipment for $160,000 to use in operating;activities for the next four years. It estimates the equipment?s salvage;value at $28,000.;Prepare a table;showing depreciation and book value for each of the four years assuming;double-declining-balance depreciation.;6.;value:10.00 points;On April 1, 2012;Cyclone?s Backhoe Co. purchases a trencher for $280,000. The machine is;expected to last four years and have a salvage value of $28,000.;Compute;depreciation expense for both 2012 and 2013 assuming the company uses;the straight-line method.

 

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